Since the early 2010’s it’s fair to say that Manchester has been one of the global investment hot spots, not just across Europe, but across the world.
For those that live and work in the city it’s clear to see the vast changes that have taken place just in the past decade. Through redevelopment, radical devolved political powers, the Northern Powerhouse and local talent, the city has ensured that it stands apart from other contemporaries across the UK and Europe.
Property price growth, jobs growth and economic growth have been the successful recipe that has seen Manchester often referred to as the capital of the north, however, I’m sure North Eastern and Scottish colleagues may dispute the use of ‘North’ in that title.
We’ve written fairly extensively in the past with regards to the fact that after the tragic events of the IRA bombings in the city in 1996, Manchester has broadly recovered and regenerated off it’s own steam, generated by dedicated local politicians, businesses and investors who have created locally-focused wealth by understanding what the city needed for itself, and what it could offer the UK and Europe more widely. Added to that, post-2010, would be a global approach reaching China.
Manchester’s relationship with Chinese business is now fairly well established, and with the construction of Airport City at Manchester Airport, a new era of collaboration appears to be here, although that has understandably stalled slightly since the COVID-19 pandemic which started in January.
The reasons outlined above are compelling enough to suggest that would be the case, however, the UK’s buy-to-let sector as a whole has been rebounding extremely impressively since restrictions were lifted earlier in May.
Many estate agents are reporting a busier time than they can remember, and most news outlets are also reporting that demand is surging across the country, with supply very much behind.
This looks to be a fairly consistent story that may well last through until the end of the year and beyond, driving growth in rents and yields.
Yields across Manchester and the North West are already among the strongest in the country, and it seems to be that the local economies are holding fairly well.
We have also written before about potential winners and losers from the current pandemic, and the Manchester economy focuses largely, these days, around future-suited businesses that operate online and in e-commerce.
This is also a huge strength for a city that boasts a young, well-qualified, skilled and relatively wealthy population. This in turn allows developers to confidently build some of the most impressive real estate in Europe, and allows investors to confidently fund them knowing they will receive a strong and stable return.
Nothing is absolutely certain, of course, but given Manchester’s track record and its strengths give the city a pretty strong chance of recovery and growth.